Choosing Between Full Payment and Rent-to-Own Schemes

Condo Living.

After months of pondering, you have finally decided to buy your new home. But now, you are faced with a new dilemma: what payment scheme should you choose to purchase your home? Will you pick rent-to-own schemes or full payment modes?

Rent-to-own schemes are payment options where you can rent a condo, and have the option to own your home. Full payment, on the other hand, lets you buy your house in full payment, whether in cash, cards, or cheques.

Knowing the advantages of these options may help in your decision-making process. So check out these benefits of rent-to-own versus full payment purchases.

Benefits of Rent-to-Own Schemes

  1. You pay less the amount of the down payment.
  2. You can use your home according to your lifestyle.
  3. You do not have to worry about moving houses.
  4. You can use this time to test out your home’s environment.
  5. You would have extra money for other financial goals.
  6. You have the time to turn it into a lifelong investment.

Photo courtesy of Erik Mclean via Unsplash

1. You pay less the amount of the down payment.

Owning and renting a condo unit requires shelling out a large amount of money. If you choose full payment purchases, you have to worry about paying the advance payments, deposits, and the down payment. But fortunately, one of the benefits of rent-to-own agreements is you would have to pay less the usual amount of the down payment. Plus, you can own the home in just months without shelling a large amount of money!

In addition, rent-to-own agreements have payment perks. In DMCI Homes, one of these perks is Price Protect™, where the unit’s price is not subject to any increase if the client wants to purchase the property in the future. For example, the starting lease price is at 4.5 million. After 24 months (the standard period for leasing), the value of the property might increase at 4.7 million based on different factors. But under the Price Protect™, the basis for all computations will still be at 4.5 million.

Photo courtesy of Roberto Nickson via Unsplash

2. You can use your home according to your lifestyle.

How do you see yourself five years from now? Perhaps it sounds like the usual professional question, but it can also apply to owning a home as well. If you answered that you see yourself travelling around the world and going where life takes you, you might as well settle for rent-to-own schemes. But if you are still not sure about your next move in your life and just want to enjoy the condo life for an indefinite time, you can opt to rent out your space as your additional income in the future.

You can still rent out your space for additional income if you paid the property in full, but having a rent-to-own agreement makes your housing choice more flexible. You would have less to worry about, if ever you really do not want to return to the property’s location for some reason.

Photo courtesy of Erda Estremera via Unsplash

3. You do not have to worry about moving houses.

If you are looking for a permanent home, choosing a full payment and rent-to-own schemes are both good options. You do not have to worry about moving houses anytime or worrying about putting changes in your home, because you own the property in any of the two schemes. What makes rent-to-own better though, is that you can move in faster.

For full payment purchases, it might take time for your offer to be accepted. But with rent-to-own payments, you only have to complete the documentation, sign a contract, finalize the payment method, and make an advance payment and deposit. Then, you can already move in!

Plus, should there be changes in your condo’s buildings, the condo developers have you ensured about maintenance and other repair concerns. Within 24 months of leasing, you can easily personalize your condo’s ambiance to your liking, if you decide to stay there for good. You would also be near your workplace, and have access to new and awesome establishments near your condo’s community.

Photo courtesy of HiveBoxx via Unsplash

4. You can use this time to test out your home’s environment.

There are lots of reasons to invest in a good condo community like DMCI Homes. You have access to a community that is in close proximity to major highways, schools, work hubs, hospitals, and other major establishments. Plus, you have access to resort-style living, depending on the condo community that you have chosen.

But no matter how good the community is, not everyone has the same preferences. Remember that your house should feel like a home, which is something comfortable and you would want to go home to.

For example, you find that your condo’s location does not fit your liking or you want to upgrade to a larger unit. Paying the unit in full will not give you the option to evaluate such circumstances, whereas a rent-to-own scheme gives you time to test out the place, and the liberty to choose and transfer to a home that best suits you.

Photo courtesy of Artem Beliaikin via Unsplash

5. You would have extra money for other financial goals.

Right now, you may be assured of your finances. But if there is anything that the pandemic has ever taught us, it is that life can be unpredictable.

What if you suddenly need money to pay for a health emergency? Or what if you only have enough money to pay for the condo; what happens after to your other finances? How would you provide for your other financial responsibilities?

A full payment scheme will put a huge dent in your finances, especially if you do not have the extra money in your pocket. Picking rent-to-own schemes are some of the good condo budgeting tips to help you manage your finances well. Also, it would be a great opportunity to have a home when you need it the most, but do not have enough finances to fully own one right away.

Photo courtesy of Mathieu Stern via Unsplash

6. You can turn it into a lifelong investment.

Real estate is one of the good investment ventures right now, with most residential properties at their lowest prices these days. If you decide to purchase the condo in full by the end of your leasing contract, you can turn it into an investment by modifying it’s interior and renting it out. You now have a passive investment, or you can hand down its ownership to your children in the future.

Plus, you can make it as a vacation home or another home to turn to for emergencies. For example, you have to stay in Manila for a work conference or business trip. You do not have to pay for accommodation then, you just have to stay in your condo instead.

But if sometime during your stay, you chose not to purchase the unit, you’ve got nothing to lose. You do not have to worry about the upkeep of the unit if you leave it, and you can use that time to improve your credit score for a housing loan.

Looking at both rent-to-own and full payment options, one can conclude that both of them largely depends on your lifestyle, finances, and investment ventures. If you have finally made up your mind on your payment schemes, make sure to check out the quality and affordable properties only in DMCI Homes.

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